Asian Bauxite & Metals Conference Singapore

Transcription

1 Asian Bauxite & Metals Conference Singapore 22/23 October 2015 DEVELOPMENTS IN INNOVATIVE TECHNOLOGIES BAUXITE AND ALUMINA PROCESSING Michael Shenton Minerals & Energy 1

2 DISCLAIMER Certain statements made during or in connection with this communication, including without limitation, those concerning the economic outlook for the mining industry, expectations regarding mineral prices, production, cash costs and to the operating results, growth prospects and the outlook of Prima Resources ( Prima Resources ) operations including the likely commencement of commercial operations of the Projects and its liquidity and capital resources and expenditure, contain or comprise certain forward-looking statements regarding Prima Resources s operations, economic performance and financial condition. Although Prima Resources believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in prices and exchange rates and business and operational risk management. Prima Resources undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today s date or to reflect the occurrence of unanticipated events. Not an offer of securities or financial product advice This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security in Prima Resources and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. [In particular, this presentation may not be released or distributed in the United States]. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Any securities described in this presentation have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities law. This presentation is for information purposes only and is not financial product or investment advice, nor a recommendation to acquire Prima Resources equity. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Oct 2015

3 Overview Table of Contents 1. Business Benefits - Bauxite Residue Smelter Projects 2. Smelting Technology Other Industries Chromite Smelting Ilmenite Smelting Cobalt Smelting Nickel Smelting Lead Smelting Magnesium Smelting Electronic / Scrap Recycling / Smelting Metals Scrap Recycling / Smelting Waste / Tailings Ponds Reclamation 3. Smelting Technology BAA Industry Prima 4. Innovative Drying Technology Genesis Resources 5. Prima Resources - Current Projects Minerals & Energy 3

4 1. Business Benefits - Bauxite Residue Smelter Projects WHY? Bauxite Residue Reclamation Projects Answer to maximise profits from Bauxite Ore Tonnes Bauxite Ore to Produce 1.0 Tonne Alumina (WA) 2.0 Tonnes Bauxite Residue are produced 2. $100 / Tonne Profit from Alumina $600 / Tonne Profit from Extracting Metals from Bauxite Residue 3. Profit / Tonne of Bauxite Ore $ 33 /Tonne Current Alumina Refinery Annual Operations $400 / Tonne Metal Extraction Annual Production of BR $433 / Tonne Total Annual Profit from Alumina + BR 14 x Increase in Profitability / Tonne of Bauxite Ore Minerals & Energy 4

5 1. Business Benefits - Bauxite Residue Smelter Projects WA ALUMINA REFINERIES BUSINESS BENEFITS Reclamation of Metals from Bauxite Residue MT of Bauxite Residue stored in ponds over last 25 Yrs $158 Billion - Estimated metal value stored last 25 Yrs $6.0 Billion/Yr - Estd Annual Profit from reclaiming metals MT of Bauxite Residue Annual Production $15.0 Billion Estd metal value produced annually $13.0 Billion Estd annual profit from reclaiming metals 4. Plasma smelting technology now available to process Bauxite Residue for multiple metals simultaneously 5. Zero greenhouse gas emissions & Zero solid waste residue from smelter 6. Total reclamation & elimination of Bauxite Residue Storage Minerals & Energy 5

6 1. Business Benefits - Bauxite Residue Smelter Projects Total WA Alumina Refineries Stored Residue Bauxite Residue Stored Last 25 Yrs 225 MT (9.0 MT/Yr) Annual Profit $6.0 Billion / Yr (25 Yr Program to recover metals) Location Annual Red Mud Stored MT/Yr No Of Years Total Red Mud stored MT/Yr BHPB Worsley Alumina Refinery Alcoa Wagerup Alumina Refinery Alcoa Pinjarra Alumina Refinery Total WA Alumina Refineries 225 Metals Available from MT Stored Bauxite Asset Value of Metal Available (Profit after Operating Costs and before Tax) Total Metal Production over 25 Yrs MT Profit $ / Tonne Value of Asset $ Million Per 25 Yrs Profit $ Million Per 25 Yrs Iron ,840 20,525 Aluminium ,650 28,800 26,400 Titanium ,000 97, ,600 Total Value of Smelted Metal Asset 158, ,525 Minerals & Energy 6

7 1. Business Benefits - Bauxite Residue Smelter Projects Total WA Alumina Refineries Annual Residue Production Annual Bauxite Residue Production 20.0 MT/Yr Annual Profit $13.0 Billion/Yr Location Current Annual Red Mud Production MT/Yr No Of Years Total Red Mud Production MT/Yr BHPB Worsley Alumina Refinery Alcoa Wagerup Alumina Refinery Alcoa Pinjarra Alumina Refinery Total WA Alumina Refineries 20 Annual Production 20.0 MT/Yr Asset Value of Metal Available (Profit after Operating Costs and before Tax) Total Metal Production MT/Yr Profit $ / Tonne Value of Asset $ Million Per Yr Profit $ Million Per Yr Iron ,920 1,825 Aluminium 1.4 1,650 2,556 2,343 Titanium ,000 9,600 9,120 Total Value of Smelted Metal Asset 15,076 13,288 Minerals & Energy 7

8 1. Business Benefits - Bauxite Residue Smelter Projects Typical 1.0 MT/Yr Bauxite Residue Plasma Smelter High Level Cost Model MT/Yr Bauxite Residue Smelter Metal Prices Operating Costs / Tonne Aluminium USD $/Tonne 1,800 Bauxite Reclamation USD $/Tonne 15 Iron USD $/Tonne 400 Smelter Operating Cost USD $/Tonne 300 Titanium USD $/Tonne 20,000 Freight Cost $/Tonne/Km 0.05 Landholder Cost % of Profit 0.00% Materials Royalty Payment % of Value 2.5% Feedstock KT/Yr 1,000 Aluminium KT/Yr 100 Iron KT/Yr 365 Titanium KT/Yr 24 Total Operating Costs Bauxite Reclamation $ Million 16.5 Annual Revenue Smelter Operating Cost $ Million Bauxite $ Million - Freight Cost $ Million 4.0 Aluminium $ Million Corporate Cost $ Million 4.8 Iron $ Million Landholder Cost $ Million - Titanium $ Million Royalty Payment $ Million 40.3 TOTAL REVENUE $ Million TOTAL OPERATING COST $ Million EBITDA $ Million Minerals & Energy 8

9 1. Business Benefits - Bauxite Residue Smelter Projects Minerals & Energy 9

10 2. Smelting technology other industries CHROMITE SMELTING Minerals & Energy 10

11 2. Smelting technology other industries ILMENITE SMELTING Minerals & Energy 11

12 2. Smelting technology other industries COBALT SMELTING Minerals & Energy 12

13 2. Smelting technology other industries NICKEL SMELTING Minerals & Energy 13

14 2. Smelting technology other industries LEAD SMELTING Distillation The tin department treats the crude solder alloy coming from the foundry. At the same time it can treat all other types of tin bearing raw materials coming from other sources. In the first stage of this process, the greater part of the lead in the alloys is evaporated through vacuum distillation. The lead vapour is condensed into a soft lead and cast into 25 kg ingots. During the second distillation stage the remaining lead is removed to produce pure tin ingots with a lead content below 100 ppm, possibly even down to 50 or below 25 ppm of lead. In ScanArc's plasma-based smelting reduction processes, the reactions take place in a coke-filled shaft furnace with tuyeres spaced symmetrically around the lower part of the furnace. The shaft is completely filled with coke. Plasma generators and equipment for injection of metal oxides mixed with slag forming material and possibly reducing agents are attached to the tuyeres. In front of each tuyere a cavity is formed inside the coke column where reduction and smelting take place. At regular intervals the produced slag and metal are tapped from the bottom of the shaft furnace. In the case of iron ore smelting the off-gas from the furnace, consisting mainly of carbon monoxide and hydrogen, can be used for prereduction of the ore. In other applications of the process, such as reclaiming of alloying metals from baghouse dust, the produced gas is utilised as a fuel gas. If the raw material contains metals with high vapour pressures, for example zinc and lead, these metals leave the furnace with the offgas. The off-gas then passes through a condenser where the metals are recovered from the gas Minerals & Energy 14

15 2. Smelting technology other industries MAGNESIUM SMELTING MINTEK PILOT PLANTS Minerals & Energy 15

16 2. Smelting technology other industries ELECTRONIC / SCRAP RECYCLING / SMELTING Duesmann & Hensel Recycling commences operation of plasma smelting furnace Aschaffenburg, 10 Sept Duesmann & Hensel Recycling, one of the leading international businesses in catalytic converter recycling announces the commissioning of a plasma smelting furnace. On the Karlstein site near Frankfurt up to 2,000 metric tonnes of material containing precious metals will be processed per annum to recover the precious metals platinum, palladium and rhodium. Other WEEE smelting methods that provide a more localised solution are now emerging and will become increasingly important in the near future as Basel Convention rules combined with the desire for countries to retain ownership of valuable resources start to restrict the movement of WEEE between countries. Probably the most important of these is DC plasma smelting, which is currently used extensively for the recovery of platinum group metals (PGM) from automotive and industrial catalysts. In this application of the technology, the PCB scrap is melted using a gas-stabilised electric arc (i.e. a plasma) in order to separate the unwanted ceramic materials (which form a slag), and the organics and resins in the PCBs (which report to the exhaust gas), from the valuable metals (which form a mixed metal alloy suitable for final refining). Plasma smelting plants have an annual capacity of typically 2,000 to 6,000 tonnes of PCB scrap per year, Minerals & Energy 16

17 2. Smelting technology other industries Waste / Tailings Ponds Reclamation InEnTec s technology, called the Plasma Enhanced Melter or PEM, uses the power of plasma to break materials apart into their elemental components (such as hydrogen, carbon, and oxygen) and then transform those elements into synthesis gas which is one of the basic building blocks of the chemical and energy industries. Plasma, in simple terms, is an electrically charged gas, much like the sun and stars. The PEM represents the ultimate in recycling because it actually rearranges the molecular structure of low-value materials (waste) and transforms them into high-value products such as transportation fuels, hydrogen, electricity and manufacturing feedstocks. Feedstocks to the PEM can include household garbage (municipal solid waste), hazardous waste, medical waste, commercial and industrial by-products, and virtually any other type of organic material or waste. The PEM is clean, efficient, environmentally friendly, and cost-effective. Tetronics patented Direct Current (DC) Plasma Arc technology offers the closest solution to zero waste that is currently available. With five decades of experience, and over 80 reference plants, this green sustainable alternative for waste management uses ultra-high temperatures to melt, gasify or vaporize any waste material, in order to treat, recover or generate useful commercial products Minerals & Energy 17

18 2. Smelting technology other industries EXAMPLE : FLOWSHEET: CYMCO 30 MW DC FURNACE ILMENITE SMELTING. - 85,000 TPA TITANIUM DIOXIDE SLAG - 60,000 TPA PIG IRON Minerals & Energy 18

19 2. Smelting technology other industries EXAMPLE : FLOWSHEET: MINTEK PLASMA SMELTER PILOT PLANT - METAL SEPARATION Minerals & Energy 19

20 3. Smelting Technology BAA Industry - Prima Low Pressure Smelter Pressure 10-7 Bar Aluminium Gas at K Iron Gas at K Titanium Gas at K ENEXAL Project Low Pressure Smelter Energy Savings Current Process GJ/KG Al LPS Process GJ/KG Al Energy Saving 40% (Does not include Syngas Produced ) Total Energy Saving approx 75% Minerals & Energy 20

21 3. Smelting Technology BAA Industry - Prima Aluminium / Titanium at 10-7 Bar Aluminium / Iron at 10-7 Bar Minerals & Energy 21

22 3. Smelting Technology BAA Industry - Prima Minerals & Energy 22

23 3. Smelting Technology BAA Industry - Prima Full Scale Pilot Plant 120,000 T/Yr Description Data Per Tonne Data per 120,000 Tonnes Feed Bauxite Residue 1.0 T/Hr ( 5,500 T/Yr) 120,000 T/Yr Coke 95 Kg/T 9,000 T/Yr Power - Smelting 1.3MW T/Hr 23.5 MW Power - Operations 10.0 MW Energy Process MJ/Kg 34,000 GJ Energy - Vacuum / Equipment MJ/Kg 28,000 GJ Energy - Total / Kg 0.06 GJ/Kg Metal 2280,000 GJ Carbon Dioxide ( Captured) 3.0 Tonnes /Tonne 360,000 T Cooling Water 2.5 CuM / Tonne 300,000 Cu M / Yr Rotary Drying Kiln Temp 600 Deg C Feed Moisture Content < 0.1% MC Gas Conversion /Re-use Dependant on Plant Iron T/Hr (2,007 T/Yr) T/Yr Aluminium T/H (390 T/Yr) 8,000 T/Yr Titanium T/Hr ( 132 T/Yr) 3,000 T/Yr Total Metal Produced 0.46 T/Hr (2,400 T/Yr) 55,000 T/Yr Capital Cost $400 Million Annual profit $70 Million Minerals & Energy 23

24 Typical Plasma Smelter Developments in Technology 3. Smelting Technology BAA Industry - Prima Minerals & Energy 24

25 Typical Plasma Smelter Developments in Technology 3. Smelting Technology BAA Industry - Prima Minerals & Energy 25

26 3. Innovative drying technology - Genesis Resources Genesis Resource Technology Holdings Ltd Material Drying and Classifying Solutions Johan Strauss on For More information. Genesis Resource Technology Pty Ltd (CAN ) T: E: jstrauss@genesisrestech.com W: Minerals & Energy 26

27 3. Innovative drying technology - Genesis Resources Minerals & Energy 27

28 3. Innovative drying technology - Genesis Resources (1) Separation of Caustic from Hydrate (2) Separation of Caustic from Bauxite Residue (3) Conversion of Bauxite Residue to Non Hazardous Material (4) Separation of Caustic from Liquor Burning Circuit Minerals & Energy 28

29 5. Prima Resources = Current Projects PRIMA RESOURCES 1. Prima Resources - Current Projects 1.1 Gove Alumina Refinery 1.2 WA Alumina Refineries 1.3 Manjimup Titanium 1.4 Microbe Organic Farming 1.5 Cyprus Tailing Ponds Projects For more Details refer : Minerals & Energy 29

30 Asian Bauxite & Metals Conference Singapore 22/23 October 2015 DEVELOPMENTS IN INNOVATIVE TECHNOLOGIES BAUXITE AND ALUMINA PROCESSING QUESTIONS Michael Shenton Minerals & Energy 30